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Inflation Essay Topics & Paper Examples

Evaluate the Effectiveness of Business Information

PepsiCo Inc. is an American multinational food and beverage corporation headquartered in Purchase, New York, United States, with interests in the manufacturing, marketing and distribution of grain-based snack foods, beverages, and other products. PepsiCo was formed in 1965 with the merger of the Pepsi-Cola Company and Frito-Lay, Inc. PepsiCo has since expanded from its namesake product Pepsi to a broader range of food and beverage brands, the largest of which include an acquisition of Tropicana in 1998 and a merger with Quaker Oats in 2001—which added the Gatorade brand to its portfolio. P5 DESCRIBE THE INFLUENCE OF TWO CONTRASTING ECONOMIC ENVIROMENTS ON BUSINESS ACTIVITIES WITHIN A SELECTED ORGANISATION. KENYA Kenya officially the Republic of Kenya, is a country in East…

Fundamentals of Macroeconomics

* Gross Domestic Product (GDP)- is the market value of all goods and services within a country in a period of time (Hindsight). * Real GDP- account for changes in the price level, an adjusted measure compared to Nominal GDP. * Nominal GDP- When a GDP figures that has not been adjusted for inflation. * Unemployment Rate- The rate is measure of unemployment citizens by dividing the number of unemployed by all currently employed. * Inflation Rate- Prices of items and services is rising, while purchasing power is in decline. * Interest Rate- The interest is paid by borrowers for the use of money they borrow from a loan lender. Part 2 An example would be food stamps sales and…

Gross Domestic Product (Gdp)

Market value of recognized goods and services produced in a country over a period of time. Real GDP Real GDP reflects the value of all goods and services produced in a year with inflation-adjusted measures. Nominal GDP GDP figures that have not been adjusted for inflation. Unemployment rate Unemployment rate is figured by people that are actively looking for work and are available to work at the present moment. Inflation rate The rate of increase in a price index for example consumer price index it is the percentage of change in prices over time usually measured yearly. Interest rate Percentage of money that is paid back to a lender on funds borrowed. The United States Economy can be divided into…

Inflation

Economies and especially the more wholesome global economy have been going through phases that would be expected in an individual economy. The general trend of any given economy is marked by an indifferent performance phase called trough where the growth is usually static. Improved economic conditions will result into recovery that will be in operation until an optimum is reached. Capacity constraints then come into place and cut down on the rate of growth and push it down back into the static stage. The period between the optimum and the static phase is called recession. This phase is mostly characterized by inflation. At the moment inflation rates in the world are rising thus prompting us to ask ourselves whether the…

Money Supply

A macroeconomic concept is the quantity of money available within the economy to purchase goods and services. Because (in principle) money is anything that can be used in settlement of a debt, there are varying measures of money supply. The narrowest measures count only those forms of money held for immediate transactions. In other words, if the money supply grows faster than real GDP, inflation must follow as velocity has been shown to be relatively stable. One of the principal jobs of central banks (such as the US Federal Reserve Bank, the Bank of England and the European Central Bank) is to keep money supply growth in line with real GDP growth. Central banks do this primarily by applying pressure…

Country Risk Analysis – Peru

SWOT analysis Strengths: Peru is a country blessed with natural resources. In 2010 its exports reached some 23 billion GBP, which was mainly made out of minerals, petroleum and agricultural products. Its mining industry is the largest in Latin America, accounting for 7,7 billion GBP of its total exports in 2010. The climate is also favourable for agriculture, representing 13% of GDP, and employing 30% of the population. In addition, sites like Machu Picchu, Cuscu and Sacsayhuaman make Peru a popular tourist destination for millions of people every year. Weaknesses: Although an advantage when the business climate is favourable, Peru’s heavy dependence upon natural resources and agriculture can prove to be an Achilles heel. Volatile commodity prices and low productivity…

Midterm Intermediate Macroeconomics

1. How are presidential election outcomes related to the performance of the economy? Presidential elections and the economy have a very close relationship and they go together hand and hand. Usually when the economy is good and opinion of the government is positive, the incumbent or the party of the last president wins the election. People tend the lean towards why change a good thing. A couple of theories exist in the relationship of the economy and presidents. The first one is that voters will vote for whichever president they feel shares the same economic vales that they have. Usually the poor vote liberal or for bigger government because they think they will provide more economic relief them and their…

Pharmasim Preliminary Market Strategy

Allstar Brands’ over-the-counter cold and allergy remedy Allround will continue to be the market leader among OTC cold medicines and continue to increase its stock price over the next decade in order to remain not only competitive, but the premier stock choice among competitors in the OTC cold and allergy remedy market. To further grow the Allround product it is essential to build upon the current strengths of the brand, but also seek additional areas for opportunity and growth. These goals will be accomplished by evaluating competitors entering the OTC cold and allergy remedy market and through careful planning and execution to enhance our current product to meet the desires and needs of consumers. Allstar Brands’ Allround product holds a…

Relationship Between Inflation and Exchange Rate

The existence of linkages between the level of the exchange rate and the rate of inflation has been more commonly established in the theoretical literature. Using this definition, we can show the link between inflation and exchange rates. What is exchange rate and what is inflation? An exchange rate is the value of one currency expressed in terms of another currency. Exchange rates are expressed as a comparison of the currencies of two countries. There are many theories about the causes and definitions of inflation, but generally we can say that the inflation is a rise in the general level of prices of goods and services in an economy over a period of time. Exchange rates have a very important…

Bank of Japan

Japan underwent a decade-long odyssey with deflation and the zero-bound problem. Economic activity in Japan slowed precipitously following the collapse of the socalled bubble economy in December 1989, and Japan began to experience deflation by early 1995. During this initial period, while the economy was slowing, forecasters and policymakers consistently underestimated the extent of Japan’s economic malaise. Consequently, while monetary policy seemed appropriate in terms of the prevailing outlook, the loosening proved woefully inadequate in hindsight. Convinced that Japan’s economic fundamentals were too severely distressed to be rectified with standard monetary policy measures, on March 19, 2001 the Bank of Japan announced a new policy of “quantitative easing”, in an attempt to stimulate the nation’s stagnant economy. Under this policy,…

Economics Review

1. Describe some of the trade-offs faced by each of the following: 1. a family deciding whether to buy a new car 2. a member of Congress deciding how much to spend on national parks 3. a company president deciding whether to open a new factory 4. a professor deciding how much to prepare for class 5. a recent college graduate deciding whether to go to graduate school 2. You are trying to decide whether to take a vacation. Most of the costs of the vacation (airfare, hotel, and forgone wages) are measured in dollars, but the benefits of the vacation are psychological. How can you compare the benefits to the costs? 3. You were planning to spend Saturday working…

Costs and Benefits of Inflation

High inflation has many costs: – Inflation erodes the value of money. When future prices are less predictable, sensible spending and saving plans are harder to make. People increasingly fear that their future purchasing power will decline and erode their standard of living. – Inflation encourages investments that are speculative and take advantage of inflation rather than productive investment. It can also create the illusion of temporary financial success while masking fundamental economic problems. – Businesses and households must spend more time, and money, protecting themselves from the effects of rising costs and prices. Businesses, workers, and investors respond to signs of inflation by pushing up prices, wages, and interest rates to protect themselves. This can lead to a “vicious…

Microeconomic statements

1. Indicate whether each of the following statements applies to microeconomics or macroeconomics, and why: 12 Marks Total a. The unemployment rate in Canada was 7.0 percent in January 2010 Answer: This is the macroeconomic statement because it describes the unemployment rate of the whole country. b. A Canadian software firm discharged 15 workers last month and transferred the work to India. Answer: This is the microeconomic statement because it focuses in an individual Canadian software firm of how they make decision in transferring their 15 workers to other workplace in India. c. An unexpected freeze in central Florida reduced the citrus crop and caused the price of oranges to rise. Answer: This is the microeconomic statement because it talks…

Microeconomics D. U.s.

7. Indicate whether each of the following statements applies to microeconomics or macroeconomics: a. The unemployment rate in the U.S. was 9.0% in April 2011. Macroeconomics b. A U.S. software firm discharged 15 workers last month and transferred the work to India. Microeconomics c. A unexpected freeze in central Florida reduce the citrus crop and caused the price of oranges to rise. Microeconomics d. U.S. output, adjusted for inflation, grew by 2.9% in 2010. Macroeconomics e. Last week Wells Fargo Bank lowered its interest rate on business loans by one-half of 1 percentage point. Microeconomics f. The consumer price index rose by 1.6% in 2010. Macroeconomics 11. Explain how (if at all) each of the following events affects the location…

Situational Analysis Ock

Introduction: Listed on the SGX Catalist in January 2008, Old Chang Kee is one of Singapore’s most recognized household brands, with a promise to provide convenient alternatives to fast food for its consumers. Ranked 15th amongst snack joints chain around the globe in May’s issue of Leisure and Travel Magazine in the States, Old Chang Kee currently owns more than 70 outlets in Singapore, China, Malaysia, and franchised outlets in Indonesia and the Philippines. Brand Vision: To deliver superior quality of hot finger food and ready made meals at a value-for-money price positioning; in a clean, and customer friendly retail environment. Brand Mission: Old Chang Kee aims to refine and modernize traditional food recipes for the modern and multi-cultural customers…

Universal Circuits

1. Does Universal Circuit’s Irish controller have a convincing argument for the weakness of the dollar? Why or why not? How do you interpret the evidence? The Irish controller certainly presented a very convincing argument. He argues that since the American trade deficit has been growing, the dollar will be likely to depreciate. From 1980 to 1984 the dollar appreciated against the punt by about 50% and interest rate averaged 12.6% during the same period. These high interest rates have caused the dollar to appreciate against other currencies and slowed down the high inflation rate (10% in 1981) during that same period of time. Irish controller’s main worry was that the dollar will be likely to depreciate. Over the last…

The Bretton Woods System

The Bretton Woods System (BWS) was implemented in 1946 under the Bretton Woods Agreement, each government obliged to maintain a fixed exchange rate for its currency vis-à-vis the dollar or gold. As one ounce of gold was set equal to $35, fixing a currency’s gold price was equivalent to setting its exchange rate relative to the dollar. The fixed exchange rates were maintained by official intervention in the foreign exchange markets. This intervention was about purchases and sales of dollars by foreign central banks against their own currencies whenever the supply and demand conditions in the market deviate from the agreed on par values. Any dollars acquired by the monetary authorities in the process of an intervention could then be…

Stabilizing the National Economy

* The federal government uses monetary and fiscal policies, or stabilization policies, to keep the economy healthy. The government uses methods and theories to avoid the two problems that destabilize the economy—unemployment and inflation. Unemployment can be classified as cyclical, structural, seasonal, or frictional. High unemployment is a sign that the economy is not well; on the contrary, low unemployment is a sign of a stable economy. Inflation is caused by excessive expansion of the money supply or government spending, according to the demand-pull theory. Section 2: The Fiscal Policy Approach to Stabilization * The term fiscal policy refers to the federal government’s deliberate use of its taxation rates and expenditures to affect overall business activity. The Keynesian economists and…

Marketing & Advertising

Agriculture, also called farming or husbandry, is the cultivation of animals, plants, fungi, and other life forms for food, fiber, biofuel and other products used to sustain life.[1] Agriculture was the key development in the rise of sedentary human civilization, whereby farming of domesticatedspecies created food surpluses that nurtured the development of civilization. The study of agriculture is known as agricultural science. Agriculture generally speaking refers to human activities, although it is also observed in certain species of ant and termite.[2][3] The word agriculture is the English adaptation of Latin agricultūra, from ager, “a field”,[4] and cultūra, “cultivation” in the strict sense of “tillage of the soil”.[5] Thus, a literal reading of the word yields “tillage of fields”. In finance,…

Business Environment

Business environment refers to the conditions prevailing in a society in which a business is to be operated. It is defined as the total of all things external to business firms and industries, which effect their organization and operation. The number and scope of environmental factors, which effect business, is broad. There should be included all aspects of our social, scientific, economic, political and cultural life which have some bearing upon business. Relationship of Environment to Business To understand fully the nature of business, its structure, its organization and its behavior, one must look not only at the business properly, but also at the environment within which business operates. More specifically, this means that business exists in surroundings external to…

Monetary and Fiscal Policy

1. Monetary and fiscal policy and its impact on business decision making 2. Open economy macroeconomics-Mundell –Fleming Model and its application FISCAL AND MONETARY POLICY IN INDIA AND ITS IMPACT ON Business Decision Making. What is monetary policy? Monetary policy is the management of money supply and interest by central banks to influence prices and employment. Monetary policy works through expansion or contraction of investment consumption expenditure. Monetary policy is the process by which the government, central bank (RBI in India), or monetary authority of a country controls 1. The supply of money 2. Availability of money 3. Cost of money or the rate of interest, in order to attain a set of objective oriented towards the growth and stability…

Fall of the rupee: Impact on inflation and Loans

The inflation rate in India was recorded at 4. 70 percent in May of 2013. Inflation Rate in India is reported by the Ministry of Commerce and Industry. Historically, from 1969 until 2013, India Inflation Rate averaged 7. 73 Percent reaching an all time high of 34. 68 Percent in September of 1974 and a record low of -11. 31 Percent in May of 1976. In India, the wholesale price index (WPI) is the main measure of inflation. The WPI measures the price of a representative basket of wholesale goods. In India, wholesale price index is divided into three groups: Primary Articles (20. 1 percent of total weight), Fuel and Power (14. 9 percent) and Manufactured Products (65 percent). Food…

Capital Markets Midterm Questions and Solutions

2 percent for each question 1. Liquidity… is the ease with which an asset can be exchanged for money 2. The concept of adverse selection helps to explain… why the financial system is heavily regulated 3. The Fed can influence the fed fund interest rate by selling T-bills, which ____reserves, thereby ____the federal fund rate. removes, raising 4. Standard Repos… are very low risk loans 5. A 4-year bond pays an annual coupon of 3.5%. If the interest rate equals 2.75% per year, how much do you have to pay to buy the equivalent of a $1,000,000 bond face value? $10 0280 000 6. Unanticipated deflation implies a… a decline in net worth, as price levels fall while debt burden…

Written Assignment

Answer all of the following questions. Title your assignment “Written Assignment 4,” unless your mentor directs otherwise. This assignment covers text chapters 18 through 23. 1. Explain the relationship among savings, investment, and net capital outflow. Savings are equal to domestic investment + net capital outflow. In an open economy, both net capital outflow ( which is the purchase of foreign assets by domestic investors minus the purchase of domestic investments by foreigners) and savings and domestic investments are both ways of saving, and are both used to get the full picture of total saving. 2. Describe the economic logic behind the theory of purchasing-power parity (PPP). What factors might prevent PPP from holding true? The purchasing power parity tells…

Check Your Understanding

2. A principal-agent relationships involves the owners (principals) delegating decision-making authority to managers (agents). A conflict occurs when the agents pursue acceptable levels of shareholder wealth and profit rather than a maximization of profit. They are pursuing their own self-interests. One way that the agents act in their own self-interests would be by focusing on long-term job security. This could cause the agents to limit the amount of risk taken by the firm. The firm may have an opportunity that is considered a riskier venture that could produce high profits if successful. If the venture proves to be unsuccessful, then the agent is at risk of dismissal. Therefore, the agent may avoid taking advantage of that opportunity. This may also…

Evaluate Alternative Measures

Unemployment refers to the numbers of people not working and can be measured by the claimant count and labour force survey. There are different types of unemployment and each of them requires different policies to overcome them. Firstly Cyclical unemployment or demand deficient unemployment is caused by a lack of spending throughout the economy and generally affects all sectors of the economy because spending is falling. To overcome this, the government needs to introduce policies which seek to boost spending throughout the economy. An example would be a loosening of monetary policy and cutting interest rates which make borrowing for individuals and businesses cheaper. They borrow money which is then spent in the economy which generates positive multiplier effects and…

Fundamentals of Microeconomics

Macroeconomics defined as “the study of the economy as a whole, which includes inflation, unemployment, business cycles, and growth” (Colander, G-5). There are many fundamentals that affect the economy in both a good and bad way. These fundamentals affect the economy, and they also show the growth of the economy. The fundamentals are gross domestic product (GDP), real gross domestic product, nominal gross domestic product, unemployment rate, inflation rate, and interest rate. Defining the fundamentals Gross Domestic Product is “the total market value of all final goods and services produced in an economy in a one-year period” (Colander, G-3). GDP calculation is very important because it calculates the growth, decline, or stand still have the economy. When the GDP is…

How It Affects Economic Growth

In my opinion, supporting and promoting IT investment is one of the best ways to promote economic growth and stability with minimal side effects such as inflation, and easily overcome hurdles like unequal income distribution. While I don’t think you can really influence people’s personal ownership of computers, I do believe that offering tax incentives for IT investment and development will increase overall GDP, lower unemployment, and ensure an economically stable future. First and foremost, investment towards information technology increases productivity, and makes workers more efficient in what they do. With more resources such as faster word processing, 3D Model Rendering, and instantaneous transfer of data over the internet, laborers in every facet of the economy benefit from technology and…

Inflation and Cost-push Factor

Cost-push factor inflation occurs when there is increase in cost of production of an item, which then gets translated into a higher price for that item in the market. Demand-pull factor inflation occurs when there is more money with the consumers compared to the total number of goods available in the market. With too much money chasing too few goods, prices rise because people are willing to pay more for the same item. This type of inflation generally happened when the demand exceeds supply. On the other hand, when prices fall it is known as deflation. However this is more of a theoretical concept as developing countries rarely experience deflation. Inflation in india: A combination of both cost-push and demand-pull…

Inflation Rate

Inflation means a sustained increase in the aggregate or general price level in an economy. Inflation means there is an increase in the cost of living. What are the economic policies that lead to low inflation in an economy? 1. Monetary Policy In the UK and US, monetary policy is the most important tool for maintaining low inflation. In the UK, monetary policy is set by the MPC of the Bank of England. They are given an inflation target by the government. This inflation target is 2%+/-1 and the MPC use interest rates to try and achieve this target. The first step is for the MPC to try and predict future inflation. They look at various economic statistics and try…